Final answer:
The indications of an IRS failure became evident when Congress found out that the IRS had targeted specific groups for extra scrutiny when they applied for tax-exempt status. This raised concerns about the integrity of the IRS and led to an investigation by the House.
Step-by-step explanation:
The indications of an IRS failure were apparent in 2013 when Congress discovered that the IRS had targeted certain groups applying for tax-exempt status for extra scrutiny. This raised concerns that the IRS was intentionally using its power to inconvenience citizens and their organizations. As a result, the House initiated an investigation into the IRS and publicly scrutinized high-ranking civil servants.